Germany's Infineon boosts investment in AI data centers

Germany’s Infineon expects its AI data center chip revenue to reach 2.5 billion euros (US$3.0 billion) in fiscal 2027, reflecting a nearly two-thirds rise, as it boosts investments to meet rising demand.

The company has set a chip revenue target of 1.5 billion euros (US$1.7 billion) for its current fiscal year, which started on October 1.

To support this growth, Infineon increased its planned investments for 2026 by about 500 million euros (US$591 million), bringing total planned capital expenditure to 2.7 billion euros (US$3.2 billion) to expand manufacturing capacity for data center power supplies.

CEO Jochen Hanebeck said that the company is adjusting its manufacturing plans to better serve customer needs amid increasing data center demand.

🔗 Source: Reuters

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Infineon’s forecast draws support from reported supplier changes for next-generation AI accelerators

Infineon’s revenue goal ties to potential design wins tied to next-generation AI accelerators, not only broad demand trends.
One report says Edgewater Research (a market research firm focused on the technology sector) believes Nvidia canceled about half of Monolithic Power Systems’ backlog for next-generation Blackwell processors and shifted those orders to Renesas and Infineon, allegedly after performance problems with Monolithic’s voltage regulator modules (circuits that help deliver stable power to chips) 1.
This spending push sits apart from Infineon’s earlier plan to invest an additional €5 billion to build what it has described as the world’s largest 200mm silicon carbide power fabrication plant in Kulim, Kedah, Malaysia 2.

AI hardware gains now hinge on how efficiently systems handle electricity

Infineon’s emphasis on power supplies puts energy use at the center of AI infrastructure planning.
Nvidia’s H100 has a thermal design power (TDP) of 700 watts, while commonly installed data center CPUs run below 200 watts, which increases the cost of losses across the system 3.
Operators are changing power delivery layouts by moving from 12-volt to 48-volt standards to reduce waste during transmission 3.
One analysis estimates power management could reach about 5% of data center semiconductor spend by 2030, opening another arena for chipmakers competing for AI spending 4.